Crop markets close higher on Monday

Corn futures closed solidly higher on Monday. Spillover strength from soybeans and outside markets helped push corn futures higher. The government of Greece agreed to several measures over the weekend that could prevent it from defaulting on its debt. Underlying support is coming from the decline in Argentina’s corn crop this season which is expected to give U.S. exports a boost. USDA is projecting U.S. ending stocks to be the smallest in 16 years. March ended 7 3/4 cents higher at $6.39 1/2 and December was 7 1/4 cents higher at $5.67. 

Soybean futures ended strongly higher on Monday. Futures rallied to the highest level in nearly four months. Outside market support pushed futures above technical resistance, which triggered some technical buying. The measures passed by the Greek government over the weekend that provided optimism that its debt will not be defaulted on provided support. Weather conditions in Brazil were supportive as hot and dry weather will be stressful in southern Brazil while rain in northern Brazil will slow harvest activity. March closed 23 cents higher at $12.52 and November was 19 1/2 cents higher at $12.59.

Wheat futures traded higher on Monday. The market was supported by spillover strength from corn, weakness in the dollar index and an export purchase by Egypt. For the first time since June, Egypt purchased some wheat from the U.S. Weakness in the dollar will make U.S. wheat more competitive on the global market. CBOT March closed 11 1/4 cents higher at $6.41 1/4, KCBT March was 10 1/4 cents higher at $6.83 1/4 and MGE March ended 1 1/4 cents higher at $8.15 1/2.

Cattle futures closed strongly higher on Monday. Stabilized cash markets last week and outside market support pushed futures higher. Global stocks and U.S. equities were supported and the dollar index was lower due to the Greek parliament agreeing to some measures to resolve the debt crisis. Despite poor packer margins, packers increased slaughter last week and cash market were steady or little changed from the previous week. February closed $1.55 higher at $125.50 and April was $1.35 higher at $128.15.

Lean hog futures were mixed on Monday. The nearby February contract was up slightly on firm pork prices on Friday and outside markets. Weakness in the dollar index and strength in the stock market are supportive factors for commodity trade. However, deferred contracts were unable to hold early gains and closed lower. February closed 13 cents higher at $86.98 while April ended 25 cents lower at $88.05.